Solar panels in Arizona
Key numbers that decide whether solar pays off in Arizona. Each figure links to its source and shows when we last checked it.
Last checked:
Average residential electricity rate
14.9¢/kWh
Source: Electric Sales, Revenue, and Average Price 2024, Table 5A: Residential average monthly bill by state · Oct 24, 2026
Peak sun hours per day
6.5 hours
Source: PVWatts v8 web calculator. Our run: Phoenix, AZ, 1 kW DC, fixed roof mount, 20 degree tilt, south-facing, default losses, 96% inverter efficiency · Oct 24, 2026
Net metering
Net billing (exports credited below retail)
New solar customers of Arizona Corporation Commission-regulated utilities such as APS and Tucson Electric Power are on net billing rather than retail net metering. Exported solar earns a Resource Comparison Proxy (RCP) export rate that is reset each year; new customers keep the rate in effect when they applied for up to 10 years. APS's tariff says it may not drop more than 10% a year. TEP's rate is 4.62 cents per kWh from October 1, 2026 to September 30, 2027. Salt River Project customers are on SRP's own solar price plans.
Source: Resource Comparison Proxy Export Rate · Oct 24, 2026
State and utility incentives
Arizona Credit for Solar Energy Devices
A state income tax credit of 25% of the cost of a solar energy device installed at your Arizona home, up to $1,000 per residence. Unused credit carries forward for up to five years. Leased systems and power purchase agreements do not qualify. Claim it on Form 310.
Oct 24, 2026
Property tax: solar adds no assessed value
Solar energy devices and grid-tied solar systems designed mainly for on-site use are considered to add no value to the property for property tax purposes (A.R.S. 42-11054).
Oct 24, 2026